A broad stock rally pushed the Dow Jones Industrial Average, S&P 500 and small-cap focused Russell 2000 index to new records on Monday. Investors bet President-elect Donald Trump's choice for Treasury secretary, Scott Bessent, would help guide the economy without sparking inflation.

The blue-chip Dow rose 440.06 points, or 0.99%, to 44,736.57. The broad S&P 500 gained 0.3% to end at 5,987.37. Both hit new all-time highs in the session, while the Dow also notched a fresh record close. The Nasdaq Composite ticked up 0.27%, finishing the day at 19,054.84.

Monday brought a broad advance as investors cheered Trump's decision to nominate Bessent, the founder of Key Square Group. The Russell 2000 jumped 1.47% and surpassed a prior all-time high set in 2021 at session highs. More than 3 out of every 4 S&P 500 stocks traded higher in the session.

Investors see Bessent, a hedge fund manager, as someone who will be supportive of the equity market. They believe he may also help mitigate some of Trump's most extreme protectionist policies, such as his stance on taxing imports.

"I would recommend that tariffs be layered in gradually," Bessent said to CNBC in an interview earlier this month before he was picked. "If you take that price adjustment coupled with all the other disinflationary things President Trump is talking about, we're going to be at or below the 2% inflation target again."

Treasury yields and the U.S. dollar index pulled back following the Bessent pick late Friday. Indeed, the 10-year Treasury yield dropped more than 14 basis points in Monday's session. These moves, paired with the day's equity market gains, show a "textbook" positive reaction to Trump's decision, according to Quincy Krosby, chief global strategist at LPL Financial.

"You can't ask for a better reception from the market," Krosby said. "This is the market applauding."

Big technology, on the other hand, was more of a mixed bag. While Amazon and Alphabet closed higher, Nvidia and Netflix dropped.

Monday's action adds to the narrative that last week's gains have restarted the postelection rally. After surging in the wake of the presidential race's conclusion, the ascent had taken a breather as worries about rising yields and the potential for inflation from Trump's policies took hold.

U.S. markets are dark Thursday due to the Thanksgiving holiday and close early on Friday, so trading volume is likely to be light this week. During the shortened trading week, the interest rate outlook is likely to be a focus.

Investors on Wednesday will monitor the release of October's personal consumption expenditures price index, the Federal Reserve's preferred inflation measure. Minutes from the Fed's most recent policy meeting are also due out ahead of Thanksgiving.

Stocks finish up

Stocks closed Monday's session higher.

The Dow added more than 400 points, or around 1%, to close at a new all-time high. The S&P 500 and Nasdaq Composite each advanced 0.3%.

The Russell 2000 jumped about 1.5%, hitting a new intraday record in the session.

— Alex Harring

Expect 'post-Thanksgiving dip ahead of a yearend rip,' BofA says

While the period between Thanksgiving and the end of the year is typically strong in the market, Bank of America investors can expect some difficulty immediately following the late-November holiday.

The S&P 500 typically sees some "digestion" the week following Thanksgiving before the year-end rally kicks into high gear, according to Stephen Suttmeier, the bank's technical research strategist. The broad index is up about 53% of the time in this week, but has ended the week down 0.01% on average, per historical data going back to 1928.

In other words, Suttmeier said there is a "post-Thanksgiving dip ahead of a yearend rip."

Data shows a "rip" should, indeed, be penciled in. Suttmeier found the S&P 500 has been up 71% of the time between Thanksgiving and the end of the year going back to 1928. The index has gained nearly 1.5% on average during this time frame.

The week containing Thanksgiving has also been historically positive despite being shortened. In fact, the S&P 500 has finished this week higher in 60% of years, with an average return of around 0.3%.

— Alex Harring

Market is bullish into holiday season, investment strategist says

The bulls are on top entering the holiday season, said Sam Stovall, chief investment strategist at CFRA Research.

"There used to be the old saying that the bears have Thanksgiving, but the bulls have Christmas," Stovall said. "Maybe this year, the bulls will have both."

Stovall said current overhangs on the market have been around for a while. Due to that, he said traders now think they won't hinder any advances.

"Until we come up with new reasons to worry, it's onward and upward," he said.

— Alex Harring

Regional bank stocks touch 2022 high

Regional bank and other financial stocks proved some of the stalwarts of the market Monday, helping to push indexes to records at various times, as bond prices strengthened and fixed-income yields tumbled.

A sub-index of all the regional bank stocks in the S&P 1500 was recently ahead by more than 2% and at its highest since April 2022. The index, made up of every regional bank in the S&P 500, S&P MidCap 400 and S&P SmallCap 600, is up 17% in November, 22% so far in the fourth quarter and almost 34% in 2024.

Among the individual regional banks touching 52-week highs on Monday were M&T Bank Corp. and Western Alliance Bancorp.

— Scott Schnipper

Homebuilders get a bump from Monday's lower bond yields

Homebuilding stocks are some of the many beneficiaries from Monday's decline in Treasury yields — which would push down mortgage rates, if they hold — in the wake of President-elect Trump picking hedge fund manager Scott Bessent as his choice for Treasury secretary.

The SPDR S&P Homebuilders ETF (XHB) rallied nearly 5% and touched an all-time high, bringing its November gain to 10% and its year-to-date advance at more than 31%. The S&P 500 is ahead less than 5% in November and more than 25% for the full year.

Existing home sales ran at an annual pace approaching four million units in October, after 30-year fixed-rate mortgages dropped to a low of 6.11% by mid-September from 6.6% at the start of August, according to Mortgage News Daily. Mortgage rates have since risen to roughly 7.05% on the 30-year fixed.

Ten-year Treasury yields, which set the direct for U.S. mortgage rates, tumbled to 4.265% on Monday, down 0.145 of a percentage point from Friday.

— Scott Schnipper

Las Vegas Sands is 'compelling' for 2025, Wells Fargo says

Investors should stick by Las Vegas Sands through some short-term fluctuations in gaming revenue numbers from Macao, according to Wells Fargo.

Analyst Daniel Politzer said in a note to clients that the stock is still a "compelling idea" for next year even though its gross gaming revenue from Macao has been underwhelming recently.

"While share can shift around in the near term on promotional intensity and property improvements, over time, we think it will mean revert to historical levels/table share," Politzer said.

Las Vegas Sands is undergoing some of those property improvements right now, with the Londoner in Macao being expanded.

"When all is said and done, 60% of Londoner's rooms will be suites (vs our estimate of just 6% at Sands Cotai Central), and the rooms will be at the premium end of the spectrum and better able to accommodate the premium mass player," Politzer said.

Shares of Las Vegas Sands were up 2% Monday afternoon, but are still up less than 4% for the year.

— Jesse Pound

Energy is Monday's worst-performing S&P 500 sector

Energy was the worst-performing sector in the S&P 500, dropping 1.6% as oil prices slumped more than 2%.

Oneok was the biggest loser in the sector, dropping about 7%, and ConocoPhillips shed 4% while Williams Companies and Targa Resources dipped more than 3% each.

Information technology was another underperforming sector, declining 0.6%. Nvidia was the biggest loser in the sector, slumping 3.8%.

— Samantha Subin

Russell 2000 outperforms, hits new all-time high

Small-cap stocks saw outsized gains on Monday, continuing the recent trend and notching a new record.

The Russell 2000 climbed 2% in the session and notched a fresh all-time high, surpassing a prior record set in 2021. With that, the index is up about 6.5% compared to one week ago.

By comparison, the S&P 500 ticked up just about 0.3% in the session. Its one-week gain sits at just around 1.5%.

This outperformance can be attributed to expectations for the group to benefit under President-elect Trump. That is because of the Republican's preference for less regulation, which is a stance typically considered good for smaller firms.

— Alex Harring

S&P MidCap 400 and SmallCap 600 indexes at all-time highs

It's not just large-cap stocks alone driving recent market performance.

The S&P MidCap 400 and S&P SmallCap 600 indexes both set all-time intraday records Monday, surging 1.9% and 2.2%, respectively. In November alone, the midcap benchmark is ahead 12%, while the smallcap barometer is higher by nearly 10%, more than double the 5% gain in the S&P 500 this month.

— Scott Schnipper

These stocks are on the move during midday trading

Here are the names making the biggest moves midday:

• Bath & Body Works — The Ohio-based personal care company climbed more than 16%, on pace for its best day since November 2022. The retailer raised its forecast for full-year adjusted profit and said it expects a smaller drop in annual sales.
• Robinhood — The financial services provider surged 5% after Morgan Stanley upgraded it to overweight, citing upside from President-elect Donald Trump's looming second term in office.
• Macy's — The New York-based retailer lost 3% after delaying the release of its full third-quarter results following a discovery that an employee had intentionally made incorrect accounting entries to hide delivery expenses.

Read the full list here.

— Samantha Subin

Hims & Hers shares jump in reaction to Trump's FDA nominee

Dr. Martin Makary, the chief medical officer of telehealth company Sesame, was named Friday as President-elect Donald Trump's choice to head the Food and Drug Administration. The pick, which will need to be confirmed, may have sparked a rally in shares of Hims & Hers Health on Monday. The stock, which has more than tripled year to date, gained more than 13% in trading Monday.

Both Sesame and Hims & Hers have sold compounded versions of popular GLP-1 medications such as semaglutide, the active ingredient in Novo Nordisk's Ozempic and Wegovy, via a loophole that allows pharmacies to make compounded drugs that are in short supply.

"Having an FDA leader that currently works for a company that operates as a GLP-1 compounder is at a minimum, we think a positive incremental development for the future of the broader compounded GLP-1 opportunity," said Bank of America analyst Allen Lutz in a note to clients.

Lutz cautioned that it is unclear whether Makary will be confirmed or if the FDA would take a more positive view on GLP-1 compounding. However, he views the news as "incrementally positive," although Lutz reiterated his underperform rating on Hims & Hers Health stock.

The regulatory agency is currently weighing whether tirzepatide, which is used in Eli Lilly's Mounjaro obesity drug, is in shortage.

— Christina Cheddar Berk

Real estate stocks lead S&P 500 higher

Real estate stocks rallied Monday, lifting the respective S&P 500 sector 1.7% during morning trading.

The sector was the best performer in the index, led to the upside by a 4% gain in shares of Public Storage and CBRE Group. Extra Space Storage and Alexandria Real Estate Equities jumped more than 3% each.

Consumer discretionary was the second-best performing sector, led to the upside by a 7% pop in shares of D.R. Horton. Lennar, Aptiv and Best Buy each rallied more than 6%. Ulta Beauty added 5%.

— Samantha Subin

Goldman downgrades shares of Nio, says path to profitability is hindered

Nio may be due for some pullback heading into next year, according to Goldman Sachs.

U.S.-listed shares of the Chinese carmaker fell more than 1% in the premarket after analyst Tina Hou downgraded the stock to sell from neutral. The analyst cited tepid order momentum, slow production ramp-up and delivery volume and growing price competition as downside catalysts for the stock.

"We expect limited new model pipeline for the Nio brand and slow production ramp-up for Onvo, positioning the company unfavorably into 2025E, with potentially intensified competition starting in the first quarter of the year," Hou said. "In addition, as the company continues to expand the sales network of the Onvo brand, we expect growing S&M expense together with elevated R&D expense to drag down operating losses, hindering the company's path to profitability in the next three years."

The stock has had a rough year, posting year-to-date losses of more than 46%.

— Sean Conlon

Cassava Sciences craters 85% after stopping trials for Alzheimer's drug

Cassava Sciences shares cratered 85% after the company halted late-stage trials of simufilam, an Alzheimer's disease treatment. The drug failed to reduce the decline of cognitive function in patients in the study, who had mild or moderate Alzheimer's.

This is only the latest setback to plague the embattled company. Earlier this year, a neuroscientist formerly involved with the drug's development was accused of submitting false data to get funding for his research. The U.S. Securities and Exchange Commission also alleged two former executives made misleading claims about the company's clinical trial results in 2020.

Cassava said it will continue to review simufilam data and evaluate its next steps.

— Christina Cheddar Berk

Stocks open higher

Stocks were in the green as the holiday-shortened trading week kicked off Monday morning.

The Dow added about 350 points shortly after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite jumped 0.5% and 0.6%, respectively.

— Alex Harring

Target is once again a top pick, Oppenheimer says

Target is once again a top pick after its recent pullback, according to Oppenheimer.

"We are adding TGT back to top pick status," analyst Rupesh Parikh wrote Monday. "In mid-October around the $157 level (note here), we removed TGT from our top pick ranking driven in part by our apparel clearance inventory observations. With the reset out of the way, we see a very compelling risk/reward scenario developing."

The analyst said he expects the stock is at or near a bottom after its recent underperformance. Target shares plunged 21% this past Wednesday after the big-box retailer cut its forecast and posted its worst quarterly earnings miss in two years. It is down more than 12% this year.

But the analyst's 12- to 18-month price target of $165 represents more than 30% upside from Friday's closing price, at $125.01. The stock rose 1.5% in premarket trading.

"Key attractions for us include in our view: 1) shares appear to be at/near a bottom; 2) negative investor sentiment; 3) achievable Q4 guidance; 4) a path to 6% operating margins remains in play; and 5) potential support from an attractive dividend yield," he wrote.

— Sarah Min

Stocks making the biggest moves premarket

Check out some of the companies making headlines in premarket trading:

• Bath & Body Works — Shares popped 16% after third-quarter earnings edged out Wall Street forecasts. The retailer earned 49 cents per share, excluding items, on revenue of $1.61 billion, while analysts polled by LSEG had anticipated earnings of 47 cents per share and revenue of $1.58 billion.
• Robinhood — Shares of the brokerage firm rose more than 7% after Morgan Stanley upgraded the stock to overweight from equal weight. The investment firm said Robinhood's revenue growth could be stronger postelection due to more active trading of stocks and crypto deregulation.
• Macy's — Shares of the retailer fell 3% after Macy's said it was delaying its official third-quarter results due to discovering that an employee had intentionally made incorrect accounting entries to hide delivery expenses. The errors took place over several years and amounted to between $132 million and $154 million. Macy's said the accounting issues do not appear to have had an effect on the company's cash position.

Read the full list here.

— Brian Evans

Macy's stock dips after disclosing accounting issue, net sales decline

Shares of Macy's dropped 3% after the retailer said it was delaying the official release of its third-quarter results due to an accounting issue.

Macy's said it discovered an employee had intentionally made incorrect accounting entries to hide delivery expenses. This amounted to an error of between $132 million $154 million over the course of multiple years, though it did not affect the company's cash management, according to the press release.

Macy's said it now plans to release its official results by Dec. 11, and that the employee is no longer with the company.

The retailer did release preliminary results for the third quarter, which showed net sales down 2.4% year over year.

— Jesse Pound

Bath & Body Works pops on earnings beat

Bath & Body Works shares surged more than 11% on Monday during premarket trading after third-quarter earnings topped Wall Street expectations.

The fragrance-focused retailer reported 49 cents in earnings per share, excluding items, on revenue of $1.61 billion. Analysts surveyed by LSEG had forecast just 47 cents in earnings per share and $1.58 billion in revenue.

This report comes amid a tough year for the stock. Shares are down nearly 29% in 2024.

— Alex Harring

MicroStrategy surges after big price target hike

MicroStrategy shares popped 7% during premarket trading after a big price target increase from Bernstein. The firm cited the company's huge Bitcoin holdings as a catalyst for the updated forecast.

"We believe, Bitcoin is in a structural bull market with conducive regulation and U.S government support, institutional adoption and favorable macro (low rates, inflation risk and record fiscal debt)," the firm said. "MSTR's debt is long term, unsecured convertible, implying negligible risk to balance sheet liquidity from Bitcoin volatility."

— Sean Conlon

European markets open in the green

European markets opened higher Monday, with the pan-European Stoxx 600 index adding around 0.5% shortly after trading began.

Sectors broadly traded higher as household goods and autos stocks led gains, both adding around 1.3%. Health-care and retail stocks, meanwhile, were the only sectors to pull back, dipping around 0.2% and 0.1%, respectively.

Regional bourses were higher, with France's CAC 40 adding close to 1%, Germany's DAX rising 0.7% and the U.K.'s FTSE 100 climbing 0.4%.

— Sophie Kiderlin

Australia notches record highs as Asia markets mostly rise

Asia-Pacific markets mostly rose Monday, with Australia's S&P/ASX 200 hitting fresh highs.

Australia's S&P/ASX 200 rose 0.28% to close at 8,417.6, hitting a new all-time closing high. The index also reached a new intraday high of 8,462.1 during the trading session.

On Monday, Singapore released its inflation figures for October. The country's headline inflation rate fell to 1.4%, the lowest rate of inflation since March 2021.

Japan's Nikkei 225 was up 1.3%, ending at 38,780.14, while the broad-based Topix rose 0.71% to 2,715.6.

In contrast, Hong Kong's Hang Seng Index fell 0.3% in its last hour of trade, while mainland China's CSI 300 was down 0.46% to close at 3,848.09.

— Lim Hui Jie

Dollar index falls Sunday night

The dollar index declined 0.6% to 106.92 on Sunday. This marks a slight pullback from the index's 0.8% gain last week, during which it hit a one-year high.

The greenback also strengthened to its highest level since July against the yen last week. The dollar was last down 0.1% versus the yen at 154.17.

— Hakyung Kim

Stock futures open higher

U.S. stock futures started trading in the green Sunday night.

Dow Jones Industrial Average futures added 150 points, or 0.4%. Futures tied to the S&P 500 and Nasdaq-100 also gained 0.4% each.

— Hakyung Kim